Enhancing Returns: Exploring Covered Calls on Boise Cascade Co. (BCC)
Maximize Your Income with Strategic Options Trading
Shareholders of Boise Cascade Co. (Symbol: BCC) who seek higher income than the current 0.6% annual dividend yield may consider selling covered calls. The July 2025 call option at the $155 strike price has a bid premium of $10.00, translating to an impressive additional annualized return of 11%. If the stock price remains below $155, this strategy could yield a total annualized return of 11.6%. However, if the stock climbs above this threshold, potential gains would be forfeited. Investors should note that BCC shares must increase by 12.5% from current levels for this to happen. In such a case, shareholders could realize a total return of 19.7%, which includes any dividends received before the shares are called away.
Stock dividends can fluctuate significantly, typically reflecting each company’s profit levels. Evaluating Boise Cascade Co.’s dividend history can provide insight into the likelihood of maintaining the current 0.6% annual yield. Below is a chart illustrating BCC’s historical dividend trends:
In the next chart, BCC’s trailing twelve-month trading history is displayed, highlighting the $155 strike in red:
The above images, along with an analysis of the stock’s historical volatility, can aid in evaluating whether selling the July 2025 covered call at the $155 strike price offers a favorable balance of risk and reward. Most options typically expire worthless, highlighting the necessity of understanding common options myths (refer to resources on this topic for more information). Currently, the trailing twelve-month volatility for Boise Cascade Co. is calculated at 38%, based on the last 251 trading day closing values alongside today’s price of $137.82. For additional call option strategies with varying expiration dates, StockOptionsChannel.com features a dedicated BCC Stock Options page.
During mid-afternoon trading on Wednesday, S&P 500 put volume reached 907,833 contracts, in contrast to call volume at 1.54 million, yielding a put:call ratio of 0.59 for the day. Relative to the long-term median put:call ratio of 0.65, the current data indicates a pronounced preference for call options among traders today.
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Additional Resources:
- GMETP Historical Stock Prices
- IMAC YTD Return
- Institutional Holders of NVC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
